Retail news that keeps industry pros in the know
Retail Brew delivers the latest retail industry news and insights surrounding marketing, DTC, and e-commerce to keep leaders and decision-makers up to date.
The controversial weight-loss drugs known as GLP-1s are now available from Hims & Hers, and the direct-to-consumer wellness brand is touting the fact that its compound version is cheaper than name brands such as Ozempic and Wegovy and will help alleviate a nationwide shortage.
“We are leveraging our size and scale to secure access to one of the highest-quality supplies of compounded GLP-1s available today in order to be a part of easing the strain this shortage is placing on the millions of Americans who have obesity and are looking for help,” CEO Andrew Dudum wrote in a blog post.
But making compounded GLP-1s available to a larger customer base could come with some risks, according to Michael Grosberg, VP of product management at Model N, a software company that helps life sciences and high-tech companies manage their finances.
“Compounding is a risky proposition and doing so at this kind of industrial scale is a risky proposition,” he told Retail Brew.
- The Food and Drug Administration defines drug compounding as the “process of combining, mixing, or altering ingredients to create a medication tailored to the needs of an individual patient,” and notes that “compounded drugs are not FDA-approved.”
Grosberg pointed to the fact that Australia’s health ministry this month banned the sale of copycat versions of Ozempic, citing safety concerns.
“While I understand that this action may concern some people, the risk of not acting is far greater,” Health Minister Mark Butler said in a statement to Bloomberg. “You only have to look to the recent reports of individuals impacted by large-scale compounding to realize the dangers posed.”
While Hims & Hers said its “size and scale” is behind the lower price, Grosberg said it likely has more to do with the fact that compound drugs are not FDA-approved.
“If you don’t have to go through that process, of course you can offer a lower price,” he said. He added that the other factor contributing to the lower price is that Hims & Hers is selling directly to consumers and bypassing insurance companies.
Hims & Hers did not respond to Retail Brew’s request for comment on the safety concerns around compound versions of the drug by the time of publication.